One important detail is that my brother currently lives with us, and we are open to having him stay with us if we do make a purchase as a renter to help cover our mortgage.I see our main options as the following:1) Buying an SFDU to live in, and "house hack" with my brother continuing to live with us and pay rent2) House hacking with MFDU.

Most importantly, whether you do it by directly engaging the seller or hire someone (agent, broker, foreclosure consultant and etc.), you must research the local laws and regulations, which are State specific.

It does not seem as important when you get started with one or two, but the issue keeps getting bigger

Depending on these answers one lender who charges 3 points could theoretically have lower total transactional costs than a lender who charges only 2 points and its important to understand all fees associated with each lenders origination process. 

That is the best case scenario, of course sometimes you get lied to and stalled, that's why it is important to always emply a double strategy and stay a step ahead.

As to the buddy I mentioned in Washington state it was the same scenario; he converted tax-free up to their standard deduction but above that he kept within the lowest tax bracket and paid the smallest amount of tax possible.Thank you @Basit Siddiqi for calling me out on this and giving me a chance to address my mistake; it's important people have the correct information.  

But, more importantly for future investing (and sanity) stay away from "guru's" and self proclaimed mentor's who have something to sell you.

I recall reading in Forbes that major foundation fixes can add surprising value, becuase it addresses the single biggest fear buyers have.. a shaky structure.From my three decades in fix-and-flips, Ive noticed how important it is to have a team you trust.. from attorneys who know probate deals to realtors willing to drive for dollars with you, scouting hidden gems.

By doing these meetups too, you will more importantly learn what doesn't work. 

It's important that anyone reading your claims about BAM understand the risks involved in these investments and that it's possible if they send money in they will never get it back out.